Peter Schiff Slams Trump’s Crypto Influence, Calls for SEC Action

Table Of Contents

Peter Schiff Raises Alarm Over Crypto Market Manipulation
Schiff Demands Congressional Probe
Controversial Truth Social Posts Spark Debate
SEC’s Crypto Task Force Takes Action
Government’s Role in Crypto Under Scrutiny
Bitcoin Reserve Proposal Faces Resistance
Future of Crypto Regulation in the U.S.
Conclusion

Peter Schiff Raises Alarm Over Crypto Market Manipulation

Peter Schiff, an economist and vocal Bitcoin critic, has accused former President Donald Trump of orchestrating what he calls the biggest crypto “rug pull” in history. Schiff is now urging Congress to launch a full-scale investigation into the matter, citing concerns over market manipulation and insider trading.

Schiff Demands Congressional Probe

According to Schiff, Trump’s recent posts on his Truth Social platform were strategically timed to influence the cryptocurrency market for personal gain. Schiff argues that Congress must investigate the authorship of these posts and identify any individuals who had prior knowledge of them. Additionally, he calls for an examination of financial transactions linked to these social media activities.

Schiff is pressing for access to emails and text messages from Trump’s associates, staff, and family members to determine whether there was any coordination behind the crypto-related posts. He believes such an investigation is crucial for maintaining market integrity and protecting investors from potential insider trading.

Controversial Truth Social Posts Spark Debate

The controversy^J stems from two key posts on Trump’s Truth Social account, which reportedly triggered a sharp surge in cryptocurrency prices. Schiff claims these posts were deliberately timed to benefit individuals who had prior knowledge, allowing them to invest in various cryptocurrencies—such as Bitcoin (BTC), Solana (SOL), XRP, Cardano (ADA), and Ethereum (ETH)—and then sell at inflated prices.

Schiff argues that these actions resemble a classic pump-and-dump scheme, and he insists that a congressional investigation is necessary to determine any securities law violations.

SEC’s Crypto Task Force Takes Action

In response to concerns about market manipulation, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has announced the creation of a 15-member Crypto Task Force. This task force, consisting of personnel from different SEC divisions, aims to provide regulatory clarity and prevent similar incidents in the future.

This move highlights a shift in the regulatory landscape for cryptocurrencies, emphasizing the need for oversight to protect investors and maintain market stability.

Government’s Role in Crypto Under Scrutiny

Schiff’s call⁸ for an investigation comes at a time when discussions about government involvement in the cryptocurrency market are intensifying. Reports suggest that the Trump administration had previously explored the idea of establishing a strategic Bitcoin reserve—a proposal that sparked mixed reactions.

As a longtime Bitcoin skeptic, Schiff strongly opposes this idea. He argues that allocating public funds to Bitcoin could introduce economic risks and even pose a national security threat. In his view, government-backed investment in cryptocurrency could lead to financial instability.

Bitcoin Reserve Proposal Faces Resistance

Schiff’s concerns align with those of several lawmakers. Senator Cynthia Lummis had introduced the Bitcoin Act, which proposed that the U.S. Treasury acquire one million Bitcoin over time to establish a government-backed reserve. However, the bill failed to gain significant traction in Congress, with limited support from lawmakers.

Schiff has pointed to the lack of co-sponsors as evidence that many in Congress remain skeptical about large-scale government investment in Bitcoin.

Future of Crypto Regulation in the U.S.

As debates over cryptocurrency regulation continue, Schiff’s accusations against Trump highlight the urgent need for transparency and oversight in the crypto market. The establishment of the SEC’s Crypto Task Force is a step toward preventing potential abuses and ensuring that the rapidly evolving digital asset industry operates within a well-defined regulatory framework.

These developments underscore the challenge regulators face in balancing innovation with investor protection in the digital asset space.

Conclusion

Schiff’s demand¹ for a congressional investigation into Trump’s alleged crypto “rug pull” reflects growing concerns about market manipulation and government involvement in cryptocurrency. The outcome of this proposed investigation, along with the SEC’s new regulatory initiatives, could have far-reaching implications for the future of cryptocurrency regulation in the United States.